Recast of Centrally Sponsored Scheme sees reduction in size of central plan this year

NEW DELHI: Recast of the Centrally Sponsored Scheme ( CSS) from the current year has seen a sharp reduction in size of the central plan compensated by a corresponding bump up in the support to state plans.

The restructuring has seen 122 CSS schemes reduced to 66, which include 17 flagship programmes of the central government. In 2014-15, funds have been provided under these schemes as Additional Central Assistance to state plan. The size of central plan is down toRs 4.65 lakh crore in 2014-15 from Rs 6.14 lakh crore in the revised estimate for 2013-14.

Correspondingly, the central assistance to state and union territory plans has risen toRs 3.30 lakh crore fromRs 1.11 lakh crore in the revised estimate. The restructuring is based on the recommendations of the C Rangarajan committee. This was a key demand of states as well.

State legislatures will vote for this spending, expected to bring transparency and efficiency in the use of funds. The biggest impact is visible under rural development head.